An Post returns to profit in 2017 report
An Post has released its financial results for 2017, showing a return to profit for the state-owned company and a move towards growth and expansion.
20 April 2018 | 0
An Post has published its annual report for 2017, which illustrates a positive position for the state-owned company and the potential for growth in the coming years.
The main takeaways from the report are:
- 2017 revenue of €840m, an increase of 1.2% on 2016
- Profit of €8.4m (vs loss of €61m in 2016)
- Parcel delivery volume up 30% on 2016
- Cost-orienting pricing restored with €1 stamp
The return to profit by An Post is in part down to the increase of the price of a stamp to €1 mid-year, along with vastly increase parcel volumes, which offset the decline in traditional postal volumes. The parcel volume increase is likely due to the ongoing boom in online sales, as consumers reach for online stores like Asos, Amazon and Ebay.
Extension of delivery to Saturdays and late-night extensions also drove growth at An Post.
An Post also underwent a strategy review in 2017, which results in the company splitting in two – the Mails & Parcels Service, and the Post Office Network. The management team was reduced from 11 executives to six, while a new deal was struck between the board and the Communication Workers’ Union.
An Post CEO David McRedmond said that the turnaround at the company was “substantial.
“With the restructuring into two businesses, the reinvigoration of management, collaboration with staff and Unions and the backing of Government,” McRedmond said, “the future is bright.
“An Post is the enabler of e-commerce, and will play an increasingly important role partnering the digital economy,” he added.
On that note, The Irish Times reports that An Post also plans to invest €50m in modernising the Post Office network, including opening 20 new offices around the country. It is one of several measures aimed to secure the long-term viability of the organisation amid societal and technological changes.